Conditional Funding Proposal
Access your equity,
and stay in your home.
Your funding request has been conditionally approved through the Bridge2Sell program.
Here is exactly how it works, what you receive, and how you keep control of your home's value.
Prepared for
Michael D. Smith, Jr.
Property
1010 River Road, Holtwood, PA 17532
Cash to you at closing
$75,000
Estimated net proceeds
Your term
Up to 18 mo
12 months; automatically extends 6 months to Month 18 if not repurchased by Month 12
Your upside
Stays yours
Equity above the repurchase price and all appreciation
Non-binding letter of intent · expires 14 days from issue
The highpoints
Three moving parts, one clear outcome
You access your equity now, stay in your home, and hold a locked-in option to buy it back or sell, with any upside remaining yours.
1
Your home is placed in a land trust
We pay off your existing mortgage at closing and the deed is held in a trust that exists solely for this transaction and dissolves upon repurchase or sale. You and Bridge2Sell are the trust's beneficiaries: you keep equitable title and the right to live in your home, and Bridge2Sell holds a beneficial interest equal to the repurchase amount.
2
You lease your home from Bridge2Sell
You sign a lease granting you full possession for up to 18 months. Your monthly lease payment is built into the transaction. Any prepaid time you do not use is prorated to your sale date and credited back.
3
You hold a binding option to repurchase, or sell
A binding Option Agreement locks in your price. At any point within the term you can buy your home back at the locked-in repurchase price, or sell it to a third party. If you sell, you receive the net proceeds above the repurchase price. Either way, the property is sold no later than Month 18.
◆ Your equity and appreciation stay yours
If the collateral must be liquidated to satisfy the repurchase, Bridge2Sell and/or its affiliates are entitled only to the amount agreed in this proposal. Any equity above the repurchase amount belongs to you. Any appreciation in the value of the property also belongs to you.
Please read carefully
THIS IS NOT A PERSONAL LOAN, MORTGAGE, LAND CONTRACT OR OTHERWISE. YOU SHOULD CONSULT WITH AN ATTORNEY TO UNDERSTAND YOUR RIGHTS AND OBLIGATIONS UNDER THE CONTEMPLATED TRANSACTION. YOU MAY ALSO WISH TO CONSULT WITH A FINANCIAL, TAX, OR REAL ESTATE PROFESSIONAL PRIOR TO SIGNING THIS PROPOSAL OR THE PURCHASE AND SALE AGREEMENT.
Preliminary terms & conditions
Your numbers
All figures are estimates, subject to change based on final title, insurance, and tax costs.
Property1010 River Road, Holtwood, PA 17532
| Estimated cash to you at closing | $75,000.00 |
| How your Total Advance is built |
| Funding request (mortgage payoff $325,000.00 plus cash to you $75,000.00) | $400,000.00 |
| Closing costs | $4,000.00 |
| Property taxes | $5,100.00 |
| Insurance | $4,500.00 |
| Admin fee | $1,997.00 |
| Prepaid lease payments (12 months at $4,633.91) | $55,606.88 |
| Total Advance | $471,203.88 |
| Your repurchase price at Month 12 |
| Total Advance (as detailed above) | $471,203.88 |
| Option fee (20%) | $94,240.77 |
| Option fee discount | -$20,156.69 |
| Net option fee after discount | $74,084.08 |
| Exit fee (1%) | $4,712.04 |
| Year-One Payout (on or before Month 12) | $550,000.00 |
Monthly pro-rate (Months 13 to 18)
$13,316.34
Your monthly lease payment $4,633.91 plus the prorated option-fee balance $8,682.43 ($52,094.60 option-fee balance over 6 months). Prorated to your closing or sale date: you only pay for the time you use.
Extension repurchase price schedule (Months 13 to 18)
| Month 13 | $563,316.34 |
| Month 14 | $576,632.68 |
| Month 15 | $589,949.02 |
| Month 16 | $603,265.36 |
| Month 17 | $616,581.70 |
| Month 18 | $629,898.06 |
Term: 12 months, continuing automatically through Month 18 if not repurchased by Month 12. The option-fee balance is prorated on a month-to-month basis through the six (6) month extension term and prorated to your closing or sale date as shown above; you only pay for the time you use.
Disclaimer & overview
The same terms, in plain language
This restates the figures on the prior pages so they are easy to follow. Please review each line and initial to confirm your understanding.
| Definition | Amount | Initials |
|---|
| The estimated amount you will receive at closing | $75,000.00 | |
| Your estimated monthly lease payment | $4,633.91 | |
| Your prepaid lease payments (12 months) | $55,606.88 | |
| The Total Advance (as detailed above) | $471,203.88 | |
| The option fee (20%) | $94,240.77 | |
| Your option fee discount | -$20,156.69 | |
| Your net option fee after discount | $74,084.08 | |
| The exit fee (1%) | $4,712.04 | |
| Your repurchase price on or before Month 12 (Year One Payout) | $550,000.00 | |
| 6-Month extension option fee (Months 13 to 18, prorated at $13,316.34/month, prorated to your closing) | $79,898.06 | |
| Resulting extension repurchase prices (Months 13 to 18) | See Months 13 to 18 schedule | |
Important terms & disclosures
Before you sign
All terms in this proposal are estimated and subject to change based on market pricing of title services, insurance costs, and tax rates. Seller will pay prorated property taxes at closing.
If the property is not repurchased on or before Month 12, the Lease Agreement and the Option Agreement automatically continue for an additional six (6) months, for a total term of up to eighteen (18) months. During the extension period (Months 13 through 18), the option-fee balance is prorated on a month-to-month basis through the six (6) month second term and prorated to your closing or sale date; you only pay for the time you use. All fees related to the Option Agreement are deferred and paid upon exercising the Option Agreement at closing, by purchase or sale of the property.
In the event the property is liquidated due to a default, the client agrees to a 2% fee based on the final sale price. This fee will be deducted from the proceeds of the sale.
Settlement statement review
The Settlement Statement (ALTA or HUD) prepared by the title company or closing attorney reflects the final figures. It is your responsibility to review it carefully to ensure all charges, credits, and terms are accurate. If you disagree with any amount, contact your sales representative before signing any closing documents. By proceeding to closing, you acknowledge you had the opportunity to review the Settlement Statement and agree with the final terms.
Property access & timeline
During the review period and prior to closing, you agree to grant Bridge2Sell (or a designated third party) access for inspections and interior and exterior photographs, to ensure accuracy and facilitate closing. After you submit this information, we send a purchase agreement; once signed, title work begins. Funding typically occurs within 30 to 45 days and can close in as few as 14 days depending on title work. This is an arms-length transaction; if both parties do not agree to the final terms, neither is obligated to proceed.
I/We, the undersigned, hereby agree to the terms and conditions of this preliminary conditional proposal as set forth herein. I/We have the authority to sign this Proposal on behalf of the related entities.
Client: Michael D. Smith, Jr.
Date
Questions? Talk to your Bridge2Sell representative.
Sales Coordinator: Scott · 419-290-4566 · Support@bridge2sell.com
